Delaware State Treasury Announces Proposed Investment Managers

Treasurer Flowers Commends Results of Historic Open and Competitive Selection Process


For Immediate Release: April 10, 2013
Contact: Deputy State Treasurer Erika J. Benner at (302) 672-6700 or

DOVER, Del. —The Delaware State Treasury today announced its proposed slate of investment managers to assist the Treasury in managing the state’s $2 billion investment portfolio. The announcement comes at the conclusion of an open and competitive selection process. A historic number of responses (110) to the Request for Proposal (RFP), ranging from small entrepreneurships to global banks, were received by the Treasury to manage the state’s liquidity and reserve mandates under the portfolio. The RFP selection committee (the “Committee”), appointed by State Treasurer Chip Flowers, was comprised of Treasury staff and a designated representative of the Cash Management Policy Board. Credit Suisse Securities (USA) LLC served as financial adviser to the Committee.

After an extensive review process, the Committee proposed the following investment firms to serve as the state’s investment managers, subject to execution of a definitive agreement with the Treasury:

Cutwater Asset Management
M & T Bank, N.A.
PFM Asset Management LLC
Wells Capital Management

Chandler Asset Management
Federated Investors, Inc.
J.P. Morgan Asset Management
Morgan Stanley Investment Management
Schroder Investment Management North America, Inc.

Upon receipt of the Committee’s recommendations, Treasurer Flowers stated, “The historic number and quality of applicants exemplifies the benefits of an open and competitive selection process. I am very proud that we continue to open the door of opportunity for those seeking to do business with the Treasury, which ensures the state hires the best group of diverse investment managers at a cost effective rate.”

At the start of the selection process, Treasurer Flowers charged the Committee with undertaking the following: (i) increase the number of investment managers to encourage competitive performance; (ii) decrease the fees charged by the state’s investment managers to generate cost savings for taxpayers; (iii) promote diversity and inclusivity; and (iv) propose investment managers that offer the best value for investment services to the People of the State of Delaware.

The selection process was part of a multi-phase plan proposed and enacted by Treasurer Flowers to increase returns on the portfolio without increasing the current level of risk and ensure fees paid to investment managers are in line with the portfolio’s returns. Under the plan, the Treasury has reversed the previously declining returns on the portfolio and increased returns for three consecutive fiscal years.

Treasurer Flowers further stated, “The bold actions taken as part of our multi-phase plan to improve the performance of the state’s investment portfolio has resulted in millions in additional interest income for the state without increasing risk. With the completion of this phase of the plan, I am confident that the proposed investment managers will meet the standard of excellence that the People of the State of Delaware expect and rightly deserve by further improving our portfolio.”

For additional information, please visit the Treasury’s website at

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